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Maryland is anticipated to lose $280 million in revenue over the next two years.

The Board of Revenue Estimates cited declining tax revenues and looming federal cutbacks as the reason.

All fingers point to Washington, D.C., as the reason. Democratic state officials say it is the worst-case scenario that materialized quicker than expected and worse than feared.

"The Trump administration is delivering an unnecessary negative shock to our economy," said Maryland Comptroller Brooke Lierman. "No accurate economic model exists to predict President Trump's behavior."

Another reason for the revenue decline is the decline in personal income taxes as federal layoffs shrink the state's tax base.

The slash in corporate income tax reflects a weak business climate, and sales tax cuts amid economic uncertainty impact consumer spending. Democrats blame the Trump administration.

"Today, we are witnessing the direct, real and painful results of the Trump administration's chaotic moves in Washington," said Guy Guzzone, D-District 13, chairman of the Senate Budget and Taxation Committee.

"Sobering," said Ben Barnes, D-District 21, chairman of the House Appropriations Committee. "It reflects President Donald Trump, who is intent on decimating our federal workforce, cutting services for those who need it most. And in doing so, wrecking our economy."

Republicans pointed out that the state has a spending problem and is too dependent on the federal government. House Republicans said in a statement, "Despite repeated calls for economic diversification, Maryland remains highly dependent on federal employment, contracts, and grants, making budget planning challenging when federal spending fluctuates."

"Indiscriminate cuts, random grant freezes, trade wars with our allies, a looming federal shutdown," said state treasurer Dereck Davis. "I mean, can we really expect anything differently? How do you govern in the face of those challenges? How do you lead in the face of those challenges?"

The $280 million write-down adds to the existing budget deficit . A new tax option is gaining traction that would generate $1 billion to help close the deficit.

The bill would put a 2.5% tax on business-to-business transactions. The services would include cleaning, accounting, some information technology services and even advertising.

"Services have become a big part of our economy, and so it's logical that we look at those as we move forward," Guzzone said.

Republicans immediately criticized the proposal and vowed to vote against any tax increases or new ones. The House could hold a hearing on the bill as early as next week.